Macro Snapshot – Inflation in South Korea hits 13-year high; German unemployment falls as pandemic measures ease
RIYADH: While Fitch cut China’s gross domestic product forecast for 2022 to 4.3% from 4.8%, South Korea’s consumer price index in April, an indicator to measure the inflation, exceeded expectations, reaching a 13-year high.
High employment levels in Ireland kept manufacturing growth booming, while German unemployment levels fell.
Australia’s central bank raised its key interest rate by 25 basis points to 0.35%, its first hike in more than a decade.
South Korea’s April CPI growth hits 13-year high, beats expectations
Consumer prices in South Korea rose much faster than expected in April, and at their fastest pace in more than 13 years, government data showed on Tuesday.
Statistics Korea showed the country’s CPI rose 4.8% in April from a year earlier, compared with a 4.1% rise the previous month.
This is the fastest annual growth since October 2008 and is above the central bank’s 2% target for a 13th consecutive month.
Jobs boost keeps Irish manufacturing growth booming – PMI
Rapid growth in Ireland’s manufacturing sector continued at a similar level in April compared to the previous month, as the biggest increase in employment in nearly a year more than offset a slight slowdown in new orders and growth production, according to a survey released on Tuesday.
The AIB S&P Global Manufacturing Purchasing Managers’ Index fell slightly to 59.1 from 59.4 in March. It was still one of the highest ratings set in nearly 24 years of data collection.
“Irish data for April paints a very similar picture to March, with strong growth in orders, output and employment, but less confidence in the outlook for activity and inflationary pressures still very high. “, said the chief economist of the AIB, Oliver Mangan.
Australia’s central bank raises rates by 25 basis points to 0.35%
Australia’s central bank on Tuesday raised its main benchmark rate by 25 basis points to 0.35%, its first hike in more than a decade, and signaled further tightening to come as it lifts the curtain on stimulus pandemic.
Concluding its May policy meeting, the Reserve Bank of Australia said the time had come to start withdrawing some of the extraordinary monetary support that had been put in place to help the economy during the pandemic.
A majority of analysts in a Reuters poll expected a 0.25% rise as inflation shocked to 20-year highs in the March quarter.
German unemployment drops in April as pandemic measures ease
German unemployment fell in April, Labor Office figures showed on Tuesday, although a further recovery prompted by the easing of measures against the coronavirus pandemic has been slowed by the war in Ukraine.
The Federal Labor Office said the number of people out of work fell by 13,000 in seasonally adjusted terms to 2.287 million.
Analysts polled by Reuters on average had expected a drop of 15,000.
The seasonally adjusted unemployment rate remained stable at 5.0%.
China’s 2022 GDP forecast cut to 4.3% from 4.8% following COVID hit
Fitch on Tuesday said it cut China’s GDP growth forecast for 2022 to 4.3% from 4.8%, saying pandemic-related disruptions have impacted the country’s economy over the past two first quarters of the year.
The ratings agency said it still expects a quarter-on-quarter GDP contraction in the second quarter, before the economy begins to recover.
Fitch raised its 2023 growth forecast for the country slightly up to 5.2% from 5.1%.